HC Directed Assessee to Respond to Only Those Issues of Fresh SCN Which Weren’t Already Decided in Previous Adjudication Order

Case Details: Jayanthi Plastics (Defunct) v. The Deputy State Tax Officer-2 - [2024] 161 taxmann.com 778 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• Ms R. Harishni for the Petitioner.
• Mrs K. Vasanthamala, Government Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of manufacturing and trading of plastic products. The department issued a show cause notice (SCN) to the petitioner to explain the reasons for difference in output tax liability as between GSTR-1 and GSTR-3B returns. It filed writ petition against the SCN and contended that the issue raised in the SCN was already subject of earlier adjudication order.

High Court Held

The Honorable High Court noted that the earlier order was in operation and the department issued another SCN against petitioner in respect of three issues, including reconciliation of GSTR-1 and GSTR-3B. The Court further noted that the issue in impugned SCN was same issue which was determined under earlier order. Undoubtedly, it was not open to department to reopen same issue after issuing earlier order.

Therefore, the Court directed the petitioner to respond to SCN only insofar as it pertained to issues of declaration of ineligible ITC and invalid ITC under Section 16(4) and as regards to issue relating to reconciliation of GSTR-1 and GSTR-3B, the impugned SCN would be set aside.